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Loan Modifications: Protect Your Home

Dedicated Los Angeles Foreclosure Attorneys

If you are having difficulty paying your mortgage, or the amount you owe on your mortgage is more than value of your home, you’re not alone. With so many poorly underwritten mortgages out there, many lenders’ claims can now be challenged in court.

A loan modification can offer significant relief for homeowners by lowering their monthly payments. But the paperwork is often extensive and confusing, and lenders have many justifications to deny your application.

The difference between negotiating with your lender alone and employing a loan modification attorney is dramatic. Lenders prefer that you apply without legal representation because you’re less likely to understand all of your rights or to have the experience to complete the paperwork fully.

the loan modification process

At Oak Tree Law, our Los Angeles foreclosure attorneys have negotiated thousands of loan modifications and can guide you through the entire process of home loan modification. We start with our evaluation, which will identify whether you are a good candidate for a loan modification. If you are a good candidate, our loan modification attorneys will evaluate your current mortgage and the challenges you face, ensure that your hardship is documented accurately, the paperwork is complete, and that the new terms of your mortgage ensure long-term debt relief.

Upon approval, we will negotiate with your mortgage holder to secure manageable payments and true debt reduction so that you can keep your home. If you do not qualify, we will work with you on other options to resolve your debt difficulties.

Common Loan Modification Questions

WHAT IS A LOAN MODIFICATION? 

A loan modification is a change in the terms of your existing mortgage with your bank. The purpose of a modification is to significantly lower your monthly payments, either temporarily or permanently.

HOW MUCH CAN I SAVE BY DOING A LOAN MODIFICATION? 

It’s possible to save hundreds or thousands a month. The length of a typical mortgage loan is 30 years. A loan modification that saves you $500 a month can equal $180,000 over the life of the loan.

WHO QUALIFIES FOR A HOME LOAN MODIFICATION? 

Homeowners who are struggling to pay their mortgages should look into loan modification as an option. Homeowners have the best chance of obtaining a loan modification if:

  • They have an adjustable-rate mortgage
  • Their mortgage has a high interest rate
  • The amount remaining on the mortgage is more than the property is worth; or
  • They are experiencing another kind of financial hardship

WHY WILL IT WORK FOR ME? 

The government has asked for ALL lending banks to help alleviate the foreclosure epidemic and modify mortgages for troubled homeowners. An Orange County loan modification attorney from Oak Tree Law can help ensure that you get the best terms available from your lender.

CAN I OBTAIN A HOME LOAN MODIFICATION IF MY CREDIT IS BAD? 

A loan modification is not based on credit. The banks are trying to turn a troubled loan that the homeowner is unable to pay into a good loan that the homeowner can ultimately repay.

WHAT IF MY INCOME IS TOO LOW? 

The Pre-Qualification evaluation we conduct at Oak Tree Law with all of our new clients will determine whether you will be able to do so before we begin the loan modification process. If you do not qualify for a loan modification or if you have been unfairly denied a loan modification in the past, we can help you with additional alternatives.

DOES EVERY BANK DO LOAN MODIFICATIONS? 

Almost all banks do. Given the current housing crisis, in our experience, banks are willing to work with clients to help save their homes.

HOW DOES THE BAIL OUT BILL AFFECT MY CHANCES OF GETTING A LOAN MODIFICATION? 

The government has instructed banks that they need to do their part to help fix the housing crisis. The Bail Out Bill will only help your chances of getting a loan modification.

If you are at risk of default on your mortgage, contact us or call 800-535-1627 to speak to an experienced loan modification attorney.